If you’ve failed to pay the payroll taxes you owe, you could be in serious trouble.
You see, the IRS has a mechanism called “The Trust Fund Recovery Penalty” that can make you personally liable for the unpaid trust fund taxes, regardless of the kind of business entity you’re running!
How does the IRS use the law to come down hard on payroll-tax debtors? And what can you do to stop the IRS from making you personally liable for your business’s trust fund payroll debts?
You’ll find out when you read my new article titled Tax Tips: Unpaid Payroll Taxes? Four Ways to Defeat the Trust Fund Penalty.
Four strategies you can use to avoid trust fund recovery penalties:
Strategy #1: Prove you weren’t responsible for the debt. There are seven factors that the IRS and the courts consider when determining responsibility. We’ll tell you what they are when you read the full article.
Strategy #2: Prove you were not “willful.” Willful, for the purposes of the trust fund recovery penalty, means your error was intentional, deliberate, voluntary, reckless, or knowing. All will be explained when you read the full article.
Strategy #3: Show that the penalty isn’t collectable. IRS policy states that they will generally not assess the trust fund recovery penalty if there’s no current or future collection potential, or if the individual and/or their income and/or their assets can’t be located. You’ll get all the details when you read the full article.
Strategy #4: Prove that time has run out. If you know the law, you can use the statute of limitations to prove that you’re not liable for any penalties. We’ll tell you everything you need to know when you read the full article.